Is Arch Cape, Oregon Good for Airbnb Investment?

To start an Airbnb in Arch Cape, Oregon, begin by researching Clatsop County's short-term rental regulations, which typically require a Transient Lodging Tax license and compliance with zoning ordinances that may restrict rentals in residential areas. Contact Clatsop County Planning Department to obtain necessary permits, including a business license and potentially a conditional use permit depending on your property's zoning. Find a suitable property within Arch Cape's coastal residential areas, ensuring it meets fire safety codes and has adequate parking as required by county regulations. Furnish the property with coastal-appropriate, durable furniture and amenities like high-speed internet, full kitchen appliances, and beach gear to attract tourists visiting the Oregon Coast. Create your Airbnb listing with professional photos highlighting ocean views and proximity to Arch Cape's beach access points, pricing competitively with other coastal Oregon rentals typically ranging $150-400 per night depending on size and season. Manage the property by establishing relationships with local cleaning services in nearby Cannon Beach or Manzanita, installing keyless entry systems for remote check-ins, and maintaining compliance with Oregon's 30-day advance booking requirements for short-term rentals while collecting and remitting the required transient lodging taxes to both Clatsop County and the state of Oregon.

To identify profitable short-term rental properties in Arch Cape, Oregon, focus on oceanfront or ocean-view properties within walking distance of the beach, particularly along Arch Cape Creek Road and streets near Hug Point State Recreation Site, as these command premium rates year-round. Target 2-4 bedroom homes built after 1980 with modern amenities, full kitchens, outdoor spaces, and parking, as families and groups seeking coastal retreats drive demand in this market. Analyze pricing using AirDNA and Mashvisor to benchmark against similar properties in nearby Cannon Beach and Manzanita, expecting average daily rates of $200-400 depending on size and proximity to beach, with occupancy rates typically 60-75% annually. Research competition by studying listings within a 5-mile radius, noting that Arch Cape has fewer STR options than Cannon Beach, creating opportunity for well-positioned properties. Utilize Clatsop County's STR permit database to understand regulatory requirements, monitor vacation rental management companies like Meredith Lodging and Ocean Lodging for market insights, and leverage tools like Rabbu and Pricelabs for revenue optimization while considering seasonal patterns where summer months generate 40-50% of annual revenue.

To obtain an Airbnb/STR permit in Arch Cape, Oregon, you must first apply through Clatsop County's planning department since Arch Cape is an unincorporated community within the county. Submit your application to the Clatsop County Planning Department at 800 Exchange Street, Suite 100, Astoria, OR 97103, or apply online through their permitting portal. Required documents include a completed short-term rental application, property deed or lease agreement, site plan showing parking and access, septic system approval if applicable, fire safety inspection certificate, and proof of liability insurance with minimum $1 million coverage. The application fee is approximately $350-500 with additional inspection fees of $150-250. The timeline typically takes 60-90 days for processing and approval. Specific Arch Cape requirements include compliance with Clatsop County's coastal overlay zones, maximum occupancy limits based on bedrooms and septic capacity, designated off-street parking for guests, 24/7 local contact person within 30 minutes of the property, and adherence to noise ordinances and coastal building restrictions. You must also register for transient lodging tax collection with both Clatsop County and the Oregon Department of Revenue, maintain a guest registry, and renew your permit annually.

Short-term rentals (STRs) in Arch Cape, Oregon are generally prohibited under Clackamas County regulations, which classify the area as primarily residential and restrict commercial lodging activities in residential zones. The unincorporated community of Arch Cape falls under county jurisdiction rather than having its own municipal government, and Clackamas County has maintained restrictive policies on vacation rentals to preserve the residential character of coastal communities. Current regulations typically prohibit STRs in residential zones unless specifically permitted through conditional use permits, which are rarely granted in areas like Arch Cape due to concerns about neighborhood impacts, parking, and maintaining community character. The county has not made significant recent changes to liberalize STR policies, instead maintaining its restrictive stance that was established in the mid-2010s when many Oregon coastal communities began addressing the proliferation of vacation rentals, meaning property owners in Arch Cape cannot legally operate short-term rentals without obtaining difficult-to-secure permits through the county's planning department.

The most promising Airbnb investment areas in Arch Cape, Oregon center around the beachfront residential neighborhoods along Arch Cape Beach and the hillside properties with ocean views near Falcon Cove, as these locations capitalize on the area's primary draw as a coastal vacation destination offering dramatic rock formations, tide pools, and pristine sandy beaches that attract tourists year-round, particularly during summer months (June-September) and holiday weekends. The neighborhoods closest to Hug Point State Recreation Site and the iconic Arch Cape rock formation itself command premium rates due to their proximity to popular photography spots and beach access points that draw visitors from Portland (90 minutes away) and other Pacific Northwest cities seeking weekend getaways and longer vacation stays. Properties near the Arch Cape Inn area and along Pacific Coast Highway (Highway 101) offer additional appeal due to easy accessibility while maintaining the secluded, intimate atmosphere that differentiates Arch Cape from busier coastal towns like Cannon Beach, making these locations particularly attractive to guests seeking a quieter alternative to more crowded Oregon coast destinations while still offering world-class ocean views, storm watching opportunities, and access to coastal hiking trails.

Airbnb properties in Arch Cape, Oregon are subject to multiple lodging taxes including Oregon's state transient lodging tax of 1.8%, Clatsop County's transient lodging tax of 7%, and potentially local municipal taxes that can range from 1-3% depending on specific local ordinances enacted around 2018-2020. These taxes are typically collected by Airbnb directly from guests at the time of booking through their automated tax collection system implemented in 2019, with Airbnb remitting payments quarterly to the Oregon Department of Revenue, Clatsop County, and applicable local jurisdictions. Property owners must register with the Oregon Department of Revenue and obtain a transient lodging tax account, file monthly returns even when Airbnb collects taxes, and maintain records of all bookings and tax collections for audit purposes. Exemptions generally apply to stays exceeding 30 consecutive days, government employees on official business, and certain nonprofit organization bookings, though property owners should verify current exemption criteria as they can change with local ordinance updates.

To start an Airbnb in Arch Cape, Oregon, the total costs would be approximately $650,000-$750,000. Property purchase represents the largest expense at $550,000-$650,000 for a median coastal home suitable for vacation rental. Furnishing costs typically range $15,000-$25,000 for a complete setup including beds, linens, kitchen essentials, living room furniture, and outdoor equipment. Initial setup costs including professional photography, listing creation, and basic renovations average $3,000-$5,000. Permits and fees in Clatsop County include vacation rental permits ($200-$500), business licenses ($100-$300), and potential HOA approvals. Insurance costs run $2,000-$4,000 annually for vacation rental coverage. Utilities including electricity, water, sewer, garbage, internet, and cable average $300-$500 monthly. First six months operating costs encompass utilities ($1,800-$3,000), cleaning services ($2,400-$3,600), maintenance and supplies ($1,500-$2,500), marketing ($500-$1,000), and property management if outsourced ($3,000-$6,000), totaling approximately $9,200-$16,100 for the initial operating period.

Airbnb properties in Arch Cape, Oregon demonstrate strong seasonal profitability with average daily rates ranging from $150-300 during peak summer months (June-September) and $80-150 in off-season periods. Properties typically generate $35,000-65,000 in annual gross revenue, with oceanfront homes commanding premium rates up to $400/night during holidays. Operating expenses average 35-45% of gross revenue, including cleaning fees ($75-125 per turnover), property management (15-25%), utilities ($200-400/month), insurance ($2,000-4,000 annually), and maintenance costs. Net profit margins typically range from 25-40% for well-managed properties, with successful hosts achieving occupancy rates of 65-80% annually. Success factors include proximity to Cannon Beach (10 minutes), ocean views, hot tubs, pet-friendly policies, and professional photography showcasing the dramatic Oregon coastline. Properties within walking distance of Arch Cape Beach and featuring modern amenities consistently outperform inland locations by 20-30% in both occupancy and rates. The market benefits from year-round appeal due to storm watching in winter months and summer beach activities, though revenue concentration in Q2-Q3 requires careful cash flow management for property expenses and mortgage payments during slower periods.

Airbnb investments in Arch Cape, Oregon typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, driven by the area's proximity to Cannon Beach and strong summer tourism demand. Properties in this coastal market, with average home prices around $800,000-$1.2 million, can expect gross rental yields of 10-15% annually, with peak summer months (June-September) commanding $300-500 per night for oceanview properties and $200-350 for non-oceanview homes. After accounting for property management fees (20-25%), maintenance, insurance, and vacancy rates of 30-40% during off-season months, net returns typically stabilize at 7-9% annually. Most investors achieve profitability within 18-24 months of operation, with break-even occurring faster for properties requiring minimal renovation and those with direct beach access or ocean views, as these premium locations can maintain 60-70% occupancy rates year-round compared to 45-55% for standard properties in the area.

STRSearch is a leading national platform that helps investors identify profitable short-term rental properties in Arch Cape, Oregon, using data analytics and market insights. Local real estate agents like Cannon Beach Property Group and Haystack Homes Realty have extensive knowledge of the Arch Cape market and work with investors seeking vacation rental properties. Pacific Northwest Vacation Rentals provides property management and acquisition consulting services specifically for coastal Oregon markets including Arch Cape. RedAwning and AirDNA offer national market analysis tools and investment guidance for short-term rental properties in the area. Vacasa, founded in 2009, operates as both a property management company and helps investors identify profitable vacation rental opportunities along the Oregon coast. Local services include Oregon Coast Real Estate Partners and Manzanita Beach Getaway, which assist with property acquisition and management. National platforms like BiggerPockets and Roofstock have expanded into the vacation rental investment space and provide resources for Arch Cape investors. Tillamook County-based agents such as those at RE/MAX and Coldwell Banker have experience with investment properties in the Arch Cape area and understand local zoning regulations affecting short-term rentals.